design of the post-2012 climate regime: placing the right incentives for climate-smart development...

Design of the post-2012 climate regime: placing the right incentives for

climate-smart development in Latin

America

Dr. René Castro Salazar – MinisterMinistry of Environment, Energy and

TelecommunicationsCOSTA RICA

MINAET

Ministerio de Ambiente, Energía y

Telecomunicaciones


TelecomunicacionesSeptember, 2011

MINAET

Traditional priorities for a country

1. Security*2. Economics*3. Social Domestic Issues4. ???5. ???6. Local Environment*7. Global Environment and Commons*

*Ref: Ambassador Richard Benedick, US, chief negotiator for the Montreal Protocol on Ozone Depletion

Country’s and Corps sustainability Country’s and Corps sustainability approach*approach*

Economy

Ecology Equity

Sustainability Country

Profits

Value of shares

Wages

consumers

Stakeholders

*Ref: Adapted from Prof. Sarah Cordero, INCAE 2004

ISO 14001

Life cycle analisys

Corporate Social Responsibility

MACROECONOMY MICROECONOMY

Ecoe

ficie

ncy

Philantropy

CA + CS + CE > CRSE BA + BS + BE < BRSE

MINAET

Availability of resources and the ability of eco-systems

Sustainability

Resources demand from the society

The firm today

Unstainable path

Steps towards sustainability

(Sustainable Development)

Ref: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrass y Mary Altomare.

The Funnel analogy

MINAET

Case # 1 Car Industry

Ref: http://online.wsj.com/article/SB119316295232868647.html?mod=sphere_ts

Fact: R & D for alternative fuels Fact: R & D for alternative fuels

boomingbooming

Ref: http://www.economist.com/business/displaystory.cfm?story_id=11670623

Fact: Used cars market value Fact: Used cars market value plummeted plummeted for most for most

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%%

sal

es

Cars andLight

trucks

Chrysler Ford GM Honda

Car makers

Ref:http://www.economist.com/business/displaystory.cfm?story_id=11670623 Fecha:030708

Demand for large oil-thirsty carsDemand for large oil-thirsty cars in free fall in free fall

Has the age of the Flex Cars Finally Arrive?

The Ford Model T was the first commercial flex-fuel vehicle. The engine was capable of running on gasoline or ethanol, or a mix of both.. Wikipedia, april 3, 2011

Even some ugly Even some ugly hybrids have a hybrids have a

chancechance

MINAET

Some are killed by market and environmental changes

Sustainability

The firm todayUnstainable path



Proactive firm in a sustainable future

Fuente: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrass y Mary Altomare.



Case #2: Cement IndustryCase #2: Cement Industry

Porter’s diamond model suggest low Porter’s diamond model suggest low rivalry rivalry

and innovation, and innovation, is it the case?is it the case?

New competitorsLow power

SuppliersLimited power

Clients Low power

Switching to substitutesunlikely

Low rivalry

Ref.René Castro, et. al marzo de 2008

Environmental commitments are similar Environmental commitments are similar and stiffand stiff

Emisiones específicas de NOx,SO2 y Polvo (g/tonelada de clinker)

1052

1961

1666

435348

580683

546

120 155

610763

1315

522

311

468669

150

2005 2010 2005 2015 2005 2012

HOLCIM CEMEX LAFARGE

NOx NOx NOx NOx NOx NOxSO2SO2 SO2SO2 SO2SO2P PP P P P

Ref: Reportes de Sostenibilidad: Holcim 2005, Lafarge 2006, Cemex 2006René Castro, et. al marzo de 2008

Social and environmental programs Social and environmental programs

growinggrowing

Ref: Reportes de Sostenibilidad: Holcim 2005, Lafarge 2006, Cemex 2006

Holcim Cemex Lafarge

Relación con ONG UICN Rainforest Alliance WWFWildlife Conservation Society

Habitat para la Humanidad

Conservation International CAREWild FoundationBirdlife InternationalInternational League of Conservation Photographers

Programas de Voluntariado Si Si SiProgramas de Salud Si Si SiContribución proyectos comunitarios "Buen Vecino"

Si Si Si

Apoyo educación y cultura Si Si SiApoyo investigación Fundación Holcim Alianza con SEKN n.i

Construcción de viviendas Si Si SiIgualdad de Género Si Si Si

René Castro, et. al marzo de 2008

Sustainability

Unstainable path



Proactive firm in a sustainable future


Is smart to go ahead of times?

The firm today


MINAET


Sustainability


Coffee firm today

Unstainable path




Example # 3Case: Coope Dota

Fuente: Coopedota, 2011

Organic waste treatement Recycling program in the community

Coope Dota´s case: Improved waste management and

innovated

Project for bio ethanol distillation

Gasification project for biogas

MINAET


Sustainability


The firm today

Unstainable path




The Funnel analogy: Coope Dota`s case

Coopedota

Coopedota

MINAET

Gradually walking towards sustainability from public and private

sectors

EHS: Environmental Health and Safety Auditing

ICC :Business Charter for Sustainable development of the International Chamber of Commerce

EMS: Environmental Management Systems from WBCSD

1991

MINAET

Social Social ResponsibilitResponsibilit

y y CO2 NeutralCO2 Neutral

Non-compliance

Base complianceBase compliance

* Ref: MINAET Team, C.R. 2011

Eco- Eco- Efficiency A- Efficiency A-

Eco- Efficiency B+Eco- Efficiency B+

Cleaner ProductionCleaner Production

Eco- Efficiency B Eco- Efficiency B

Strategy to increase Country´s competitiveness

Creatin

g value with

less

impact

Thank youDr. René Castro Salazar - Minister

MINAET


Telecomunicaciones


Telecomunicaciones

design of the post-2012 climate regime: placing the right incentives for climate-smart development...

Documents

biogas slide

impact slide

chance slide

coope dota slide

minaet case

free fall slide

funnel analogy slide

s case coopedota slide